Dollar pares back some gains after poor manufacturing data. US ISM Manufacturing Index dropped to 47.8 in September, down from 49.1 and missed expectation of 50.4. That’s also the worst reading in a decade since June 2009. Only one of the components, supplier deliveries was in expansion at 51.1. New orders rose 0.1 to 47.3. Production dropped -2.2 to 47.3. Employment dropped -1.1 to 46.3. Prices rose 3.7 to 49.7.
ISM noted: “Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth”.
